58-9a-408. Insubstantial allocation not required. (a) If a fiduciary determines that an allocation between income and principal required by K.S.A. 2021 Supp. 58-9a-409, 58-9a-410, 58-9a-411, 58-9a-412 or 58-9a-415, and amendments thereto, is insubstantial, the fiduciary may allocate the entire amount to principal, unless K.S.A. 2021 Supp. 58-9a-203(e), and amendments thereto, applies to the allocation.
(b) A fiduciary may presume an allocation is insubstantial under subsection (a) if:
(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; and
(2) the asset producing the receipt to be allocated has a fair market value less than 10% of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
(c) The power to make a determination under subsection (a) may be:
(1) Exercised by a co-fiduciary in the manner described in K.S.A. 2021 Supp. 58-9a-203(f), and amendments thereto; or
(2) released or delegated for a reason described in K.S.A. 2021 Supp. 58-9a-203(g), and amendments thereto, and in the manner described in K.S.A. 2021 Supp. 58-9a-203(h), and amendments thereto.
History: L. 2021, ch. 63, ยง 24; July 1.
Structure Kansas Statutes
Chapter 58 - Personal And Real Property
Article 9a - Uniform Fiduciary Income And Principal Act
58-9a,201 Fiduciary duties; general principles.
58-9a,202 Judicial review of exercise of discretionary power; request for instruction.
58-9a,203 Fiduciary's power to adjust.
58-9a,301 Definitions related to unitrusts.
58-9a,302 Application; duties and remedies.
58-9a,303 Authority of fiduciary.
58-9a,304 Notice to fiduciaries.
58-9a,305 Unitrust policy; requirements.
58-9a,306 Same; unitrust rate.
58-9a,307 Same; applicable value.
58-9a,308 Same; period required; optional standards.
58-9a,309 Special tax benefits; other rules.
58-9a,401 Character of receipts from entity.
58-9a,402 Receipts from distribution from trust or estate.
58-9a,403 Accounting for business or other activity conducted by fiduciary.
58-9a,405 Receipts from rental property.
58-9a,406 Receipt from obligation to be paid in money.
58-9a,407 Receipts from insurance policy or contract.
58-9a,408 Insubstantial allocation not required.
58-9a,409 Receipts from deferred compensation, annuity or similar payment.
58-9a,410 Receipts produced by a liquidating asset.
58-9a,411 Receipts from interest in minerals, water and other natural resources.
58-9a,412 Receipts from sale of timber.
58-9a,413 Marital deduction property not productive of income.
58-9a,414 Receipts from derivative or option.
58-9a,415 Receipts from asset-backed security.
58-9a,416 Receipts from other financial instrument or arrangement.
58-9a,501 Disbursement from income.
58-9a,502 Disbursement from principal.
58-9a,503 Transfer from income to principal for depreciation.
58-9a,504 Reimbursement of income from principal.
58-9a,505 Reimbursement of principal from income.
58-9a,507 Adjustment between income and principal because of taxes.
58-9a,601 Determination and distribution of net income.
58-9a,602 Distribution to successor beneficiary.
58-9a,701 When right to income begins and ends.
58-9a,702 Apportionment of receipts and disbursements when decedent dies or income interest begins.
58-9a,703 Apportionment when income interest ends.
58-9a,801 Uniformity of application and construction.
58-9a,802 Relation to electronic signatures in global and national commerce act.